CBSE Class 12 Accountancy Reconstitution of Partnership VBQs
Q.1. A & B are partners sharing profits in the ratio 1:1. C wants to join their firm as it enjoys a good reputation in the industry. A and B agreed to admit him for 1/5 th share in profits. For this, they asked him to pay his share of goodwill in cash which he was unable to bring in. A and B agreed for the same. What values are being emphasised by the firm at the time of C’s admission?
1. Following values are being reflected:-
• Sensitivity towards differently abled individuals.
• Empowering women entrepreneurship.
• Efficient utilization of surplus funds
• Mutual trust and co-operation
Q.2. After completing MBA, Arun and Radha want to start a new business but they don’t have sufficient capital. They contacted their common friend Sita, a rich lady with poor eyesight. They decided to form a partnership firm with a capital of ₹25,00,000 with a ratio of 80% by Sita, 10% each by Arun and Radha respectively. The partnership deed provided as follows :
• Interest on capital @ 12% p.a
• Salary to active partners Arun and Radha @ 9,000 p.m.
The firm earned a net profit of ₹ 9,66,000 during the year. Sita decided to donate half of her profits to a school for differently abled children.
State which values are being reflected in the above case and also prepare Profit and Loss appropriation a/c for the year.
2. Profit and Loss Appropriation Account
For the year ending on ----------------------
Q.3. A and B are partners in a firm having a workmen compensation reserve of ₹10,00,000. A worker, Rohan died in an accident while working for the firm. The firm paid ₹5,00,000 as compensation to his family and offered a job to his wife and also arranged for the education of his son. State which values are being reflected in the above case and also show the treatment of workmen compensation reserve if A and B now decide to change their profit sharing ratio from 3:1 to equal ratio.
3. It is the right of A to get indemnified against the payment which he paid for the firms business. B
violated the following values:
• Mutual trust and co-operation
• Integrity
• Truth
• Acknowledgement
Q.4. A and B are partners in a firm. A manages the business as a representative of firm. For execution of sales order to a valuable customer, A spent Rs. 5,000 for quick delivery. B is not agreeing to reimburse the above expenses from the firm’s accounts. Explain the treatment of above expense and describe which value is violated by the partners.
4. Values
• Unity
• Team work
• Pooling of resources
• Efficient use of resources
• Sharing & Caring
Q.5. What are the values involved in the formation of a partnership firm?
5. Values:
• Transparency
• Evidence
• Awareness
• Adherence to law
Q.6. What are the values disclosed by a Partnership Deed?
6. Values
• Financial security
• Fair return on Investment.
• Team Spirit
Q.7. In the absence of partnership deed, interest on Advances / Loan by a partner is to be paid @ 6% p.a. What value is depicted in the provision of Indian Partnership Act, 1932?
7. Following values are being reflected:-
1. By helping the differently abled children to come school, co. is promoting (Right To Education Act)
2. Fulfillment of social responsibility
3. Promoting the rights of differently abled children.
4. Compassion
Q.8. XYZ Cycles Ltd., a manufacturer of cycles and tri-cycles has decided to donate 100 tri-cycles worthRs. 3,00,000 to differently abled children in the CWSN (Children with special needs) assessment camp organized by Directorate of Education, Delhi on 3rd December on the occasion of “World Disabled Day”
State the values that are being reflected in the above case.
8. Following values are being reflected:-
• Sympathy
• Compassion
• Protection of rights of a minor.
• Helping the family of deceased partner.
Q.9. A,B and C were partners in a firm. A died in a road accident. A’s family has no other source of income. B and C has decided to admit A’s son D, a minor, in the partnership firm.. Firm guaranteed that his share in profits will not be less than Rs.1,00,000 in a year. State the values that are being reflected in the above case.
9. Following values are being reflected:-
• Fulfillment of social responsibility.
• Spreading health awareness among children.
• Developing hygienic habits among children.
Q.10. ABC Ltd., a manufacturer of very popular liquid soap, has decided to supply its popular product ‘Safe Hand Wash’ worth Rs.50,000 to 25 schools in the different areas of the city on the occasion of ‘Global Handwash Day’ on the 15th October at free of cost.
State the values that are being reflected in the above case.
10. Following values are being reflected:-
• Women entrepreneurship
• Team work
• Mutual trust
• Co-operation
• Women empowerment.
Q.11. Sita and Geeta are working as marketing executives in a MNC dealing in cosmetic products. After working for 5 years in MNC, both of them realized that they should start their own business, but both of them individually don’t have sufficient funds for starting the business.
Therefore, they have decided to form a partnership firm with equal amount of capital. Both have agreed that they will actively participate in the operation of the business and to share the profits or losses of the business equally. They have decided to appoint Sangeeta, their common friend , as a manager.
State the values that are being reflected in the above case.
11. Following values are being reflected:-
• Upliftment of education of children belonging to EWS
• Promoting RTE by helping student of EWS in their education
• Mutual trust
• Co-operation
• Social Responsibility
Q.12. A, B and C are partners in a firm which deals in woollen garments. D who runs a NGO and also a friend of C contacted him for supplying 1,000 woollen jackets for distributing among the students of EWS (Economically Weaker Section ) of the society studying in a school for ‘out of school children’ run under SSA program. D requested C to provide the jackets at the lowest possible rate. C discussed the matter with the other partners of the firm and the firm decided to provide required number of jackets at ‘No Profit No Loss’ to the NGO of D.
State the values that are being reflected in the above case.
12. Following values are being reflected:-
• Best use of available resources.
• Team work
• Mutual trust
• Co-operation
• Initiative.
• Awareness of legal environment.
Q.13. Ram is a graduate in Business Administration. He tried very hard for a job but he didn’t get any opportunity to work due to recession in the economy. Then he realized that he should start his own business at the ground floor of his house lying vacant. Since he didn’t have sufficient funds to invest in the business, he cannot start the business alone.
Ram contacted one of his friends Anuj and convinced him to start a business with him in partnership. Anuj decided to invest in the business and to form a partnership with Ram and wants to get the firm registered.
State the values that are being reflected in the above case.
13. It is the right of A to get indemnified against the payment which he paid for the firms business. B
violated the following values:
• Mutual trust and co-operation
• Integrity
• Truth
• Acknowledgement
Q.14. A, B and C are partners in a firm having fixed capital of Rs.5 lacs, 3 lacs and 2 lacs respectively . Firm earned profits of Rs. 1,50,000 during the year ending 31st March, 2011. These profits were divided in capital ratio instead of 2:2:1. Pass adjustment entry for the above and also state which value is being violated through their decision?
14. Values reflected are:
• mutual trust
• honesty
• Regional Integration
Q.15. Deepa and Shweta are friends and after completion of their study they started a business of readymade Garments by constituting a partnership firm with a profit sharing ratio as 3:2 respectively. Their partnership firm earns huge profits during few years. They decided to award a scholarship of Rs.10,000 p.a. for meritorious and economically weaker students. On January 1, 2012 they admit Joney, their manager as a new partner with 1/5th share in future profits. The value of goodwill of the firm is Rs. 3,50,000 and Joney is not able to bring his share of goodwill in cash. Joney is an expert in business management and he hailed from North-east of India. He contributes Rs. 50,000 as his capital.
Identify the value is involved in this question and pass the journal entries on admission of Joney.
Q.16. Amar and Bashir are sharing profits in the ratio of 3:2 respectively. They admit their friend Chandni with one fourth share in the future profits. Chandni belongs to economically weaker section of the society and not able to bring her share of goodwill. Goodwill of the firm is valued at Rs.20,000. Chandni contributes Rs.30,000 as her capital. Identify the value involved in this question.
16. Values involved:
• Upliftment of Economically weaker Section of the Society
• Women Empowerment
Q.17. X and Y were partners in a firm sharing profits in the ratio of 3:2. On march 31, 2012, their Balance Sheet was as follows:
On the above date, Z was admitted as a new partner in the firm for ¼ share in the profits on the following terms:
Z will bring Rs. 2,40,000 for her capital and Rs.40,000 for her share of goodwill. Machinery was to be depreciated by 10% and Land & Building was to be appreciated byRs. 60,000. A provision of 5% was to be created for doubtful debts.
Salary outstanding was Rs. 10,000.
Prepare Revaluation Account, Partners ‘ Capital Accounts and the Balance Sheet of the new firm. Which values of life does Revaluation Account signify?
17. Following values are being violated:
• Mutual Trust
• Honesty
• Revaluation Account signifies adaptability according to changes in life.
• Transparency
18.P,Q and R are partners sharing in the ratio 3:2:1. Q wanted to retire due to his ill health. But P and R did not want Q to retire. They suggested that he could spend less time in business and bring his daughter Radha ,who is a MBA graduate to be appointed as a manager to look after the business with a salary of Rs.2,00,000 p.a. In this arrangement Q will have a continued earning. Identify the values have been taken in to consideration in the above decision?
18. Values involved:
• Sympathy
• Honesty
• Employment opportunity
Q.19. A,B and C are partners in the ratio of 3:2:1.C wanted to retire . All the amount due to him was calculated. There was Golden Peacock which they got as an award for the best dealer in the product, they are dealing in some years ago. Until the date of retirement it was looked as an appreciation not as an asset. A and B decided to treat the golden peacock as an asset and give C”s share to him. The golden peacock valued on the date of retirement Rs 50,000.
a) Which value has been fulfilled by the A and B.
19. Values:
• Honesty
• Justice
• Respecting the efforts contributed by C in winning the award
Q.20.K,M and P are partners sharing profits equally. M wanted to retire due to his ill health. K and P accepted his request. In terms of the partnership deed the amount due to retiring partner will be settled in three instalments . M requested K and P to pay the amount in lump sum as he needs it urgently to undergo his by pass surgery. K and P accepted his request and decided to settle his amount of Rs 5,20,000. They raised a loan from bank for this purpose.
a) According to You which values have been fulfilled by the Partners?
20. Values involved:
• Empathy
• Kindness and concern for fellowmen
• Just and Equitable
Q.21.A ,B and C are partners sharing profits equally. On 1st August B died. According to the partnership deed the deceased partner’s executor will be settled in 6 equal half-yearly instalments without any interest. B ‘s wife accepted for the terms of the deed with the condition that she will be admitted as a partner for an equal share. Other partners agreed for her representation. Which values have been fulfilled ?
21. Values reflected:
• Compassion
• Empathy
• Women empowerment
Q.22. A ,B and C are partners sharing profits in the ratio of 3:2:1. C died on 1st July, 2012. D, C’s son requested A and B to admit him as a partner in place of his deceased father and the amount due to his father can be treated as his capital. D is also of the view that he will be helpful to the other partners in business by helping them in expansion process as he got his MBA from IIM. A and B accepted the request of D. Which value has been fulfilled by A and B.
22. Values involved:
• Concern
• Promoting young entrepreneurship skill.
